According to an article in the Putnam Examiner by David Propper, "In a 3-2 vote, along political party lines, the town board gave the Industrial Development Agency the green light to offer tax abatements to the hotel project along Peach Lake Road where a Best Western would be built. The 57- room hotel project stalled under the current owner, but the new owner, Shelly Nichani, is set to take over and complete the project. In order for him to purchase the property and assume the project though, he demanded IDA tax benefits be included, which now seem likely."
This could bring the first brand name hotel to Putnam County.
Article as published in the Putnam Examiner:
Southeast Town Board OKs Tax Breaks for Proposed Hotel
MAY 2, 2018 BY DAVID PROPPER
A major hurdle was cleared last week that could bring the first brand name hotel to Putnam County after the Southeast town board signed off on possible tax breaks for the property owner pursuing the project.
In a 3-2 vote, along political party lines, the town board gave the Industrial Development Agency the green light to offer tax abatements to the hotel project along Peach Lake Road where a Best Western would be built. The 57- room hotel project stalled under the current owner, but the new owner, Shelly Nichani, is set to take over and complete the project. In order for him to purchase the property and assume the project though, he demanded IDA tax benefits be included, which now seem likely.
In the first year, the property would get 50 percent of its property tax bill off and for the next nine years would get five percent less each successive year off its taxes with it eventually getting down to five percent. The number of jobs created would be about 15.
Councilwoman Lynne Eckardt, who opposed the tax breaks, said the mission statement of the IDA and the businesses it hopes to attract was different from what the hotel was offering. Part of the mission statement stated the point of the IDA is to attract “clean, environmentally sensitive manufacturing and industrial interest to the county.”
“I know it will generate some jobs, but I don’t think this really fits the bill at all in terms of the mission of the IDA,” Eckardt, a Democrat, said, adding she doesn’t think the subsidies are warranted.
Councilman John Lord, a Democrat, also voted against the tax breaks.
Attorney Michael Liguori, representing the current owner looking to sell the property, said the hotel would attract visitors to the area that would either eat locally or purchase goods at stores in the county.
It took two years to find a buyer–Nichani–for the hotel property, Liguori said.
“He won’t do the deal if he doesn’t get the benefits,” he said. “It’s not a threat, it’s just a reality.”
Liguori said he expects the IDA to approve the benefits since it usually takes the direction of the various municipalities that vote on it. The Brewster school board approved the tax benefits and the county Legislature is expected to at a later date.
The three GOP board members supported the tax benefits. Councilwoman Liz Hudak said the town is in between a rock and a hard place because if the abatements aren’t granted, the hotel might never be constructed and open.
“It looks like a white elephant,” Hudak said of the partially built hotel.
Supervisor Tony Hay said while he had some concerns, he OK’d the tax breaks because the past owner received the same benefits, but never realized them since the project was not completed.
Councilman Edwin Alvarez agreed with Hay’s sentiment.
“There’s not too many options,” Alvarez said. “To me, it’s not an option to just leave it alone.”
Heidi’s Inn owner Sean Diggin, who will face competition from the Best Western, said he was against the tax breaks for the new hotel because the purpose of the IDA is not to ensure a buyer stays in a deal. He said someone would eventually buy the property without requiring the tax benefits.
“The property will open, even if that buyer walks,” Diggin said. “Someone will buy it, the price will go down. It’ll be profitable at the right price.”